An aggregate demand curve is the sum of demand curves from different segments of the economy. Such a curve (Yd) takes into account four different economic indicators as seen below. What does the "C" stand for? Yd = C + I + G + (X-M)
A)consumption
B)cost
C)competition
D)cycle

Question

Quizplus · Accepted Answer

The "C" stands for consumption.
Key Takeaway: Personal consumption expenditures are one of the components of the aggregate demand curve equation. This consumption by households and unattached individuals is a function of disposable income.

An Aggregate Demand Curve Is the Sum of Demand Curves